Cayman Islands CRS soft landing

The Department for International Tax Cooperation (DITC) of the Cayman Islands announced on 3 March 2017 a soft opening for the first year of Common Reporting Standard (CRS) implementation regarding the due dates for notification and reporting obligations under the domestic regulations.

For 2017 registrations only, the Tax Information Authority (TIA) will accept registrations up to 30 June 2017 without considering compliance measures or penalties. In relation to 2017 reporting obligations (regarding 2016 data), the TIA will not consider compliance measures or penalties in respect of reports that have been submitted and show the status “Accepted” (within the Submission History page of the Cayman AEOI Portal) by 31 July 2017. This soft approach grants Cayman Financial Institutions a further two months in which to undertake their notification and reporting obligations under the CRS this year.

The TIA has also announced that it will issue revised CRS Guidance Notes following consultation with industry this month. It should also be noted that Cayman Reporting Financial Institutions will not have notification or reporting obligations regarding UK CDOT this year onwards because those obligations are superseded by the corresponding obligations under the CRS. The announcements do not affect existing notification and reporting obligations and deadlines regarding US FATCA, and does not apply to 2014 and 2015 reporting in respect of US FATCA and UK CDOT.